When Tapping Retirement Funds, Timing Matters

Sequence Influences How Much You Keep and How Much You Pay in Taxes

For retirees, not all savings are created equal. When retirees get ready to draw down their nest eggs, few realize that the order in which they tap their accounts influences how much they keep and how much they pay in taxes.

Increasingly, people retire with more than one type of investment or savings account. There are taxable accounts, such as a regular brokerage account or bank account. Then there are tax-deferred savings, like...